Quick MLS question

[John D.]

I found a potentially decent deal on the MLS. The property is listed as a "handymans special" and has been listed for roughly 200 days. My question is to save time, would it be advisable to reach out to the listing agent and ask if the seller would be willing to accept a substantially lower price than what they have listed? The price is pretty low now but there is probably $30-$40k in work to be done.

Any info is appreciated.  Thanks

[Gerald Demers]

Hello @John D., if it has been listed for 200 days, can you see the history of the listing? Has the status ever changed such as going pending, then back to active, then pending, then back to active? What about the price history through those 200 days. What was it as a new listing; how much has it moved over the 200 days? Who is the seller; a bank or an individual? Is it a distressed sale (REO or short sale)?

If an investor property is on the market for 200 days, it's overpriced.  If the price has not dropped or not dropped that much on a regular basis, your seller is most likely unmotivated or needs the selling price to clear the debt. 

If you are not represented by a buyers agent, I would definitely call the agent.  If you are not represented, tell them that they get both sides of the commission.  If you cannot answer the questions above, those are your first questions to the agent.  Otherwise, have a conversation with them; what is going on with this property?  Who is the seller?  The price seems really high; does the seller have a mortgage and they need the price to clear it off?  This is a great question because it might be a great subject to deal.  

The agent has a fiduciary responsibility to the seller first so don't ask questions that could put them in a difficult place - you will quickly lose their respect.  Helping you is not worth their license so telling them "I was thinking of offering 25K, do you think the seller will take it?" won't go over that well.  

Instead, after you gotten more info and some rapport, I think it would be better to talk to the agent about the price, for example, "based on my numbers, it seems 25K is a reasonable offer."  See how they respond.  Ask if the agent would write up the offer.  

Gerald Demers